Employer of Record (EOR) in the USA

Hire in the US in days, with no entity and without untangling fifty states of employment law yourself. We place you with the right vetted EOR partner, at pricing you will not get going direct, and stay on your side for the life of the relationship.

  • Independent advice
  • Vetted partners
  • Operational in days

What an Employer of Record does for you in the USA

An Employer of Record is a company that legally employs your US staff on your behalf. You choose the person and direct their work day to day. The EOR is the legal employer on paper, which is what lets you build a team in the US without forming your own company.

In practice the EOR partner takes on everything that needs a US legal entity and local expertise: a compliant employment contract under the relevant federal and state law, monthly payroll with federal income tax (Form W-4), FICA and state withholding, employer FICA, FUTA and state unemployment contributions and all statutory filings, statutory benefits, and compliant onboarding and lawful exits. You get a working team in days. The EOR carries the legal and compliance weight; you carry the commercial relationship. The only question worth spending time on is which partner is genuinely strong across the states you are hiring in, and that is the question we answer for you.

01

Legal Employer, On Paper

A compliant US employment contract under the relevant federal and state law, with all statutory terms correct from day one.

02

Compliant From Day One

Monthly payroll, federal income tax (Form W-4) and FICA withholding, employer FICA, FUTA and state unemployment contributions, and all filings to the IRS and state agencies.

03

No Entity Required

Statutory benefits and contributions, plus lawful onboarding and exits under federal and state law (employment is at-will in 49 states). You get a working team in days; the EOR carries the legal weight.

From first call to a compliant US hire

From first call to a compliant US hire at work, usually in days.

01 — Scope & quote

We map the role, salary, and start date, and come back with a clear all-in monthly cost. No guesswork, no hidden extras.

02 — Compliant contract

Your employment contract is drafted to US standards by the partner, and we sanity-check the terms and pricing before you sign. Compliant from day one.

03 — Onboard in days

A correct US contract is issued under the relevant federal and state law, with all statutory terms from day one. Your hire can start in days.

04 — Payroll & compliance run

Federal income tax and FICA calculated and withheld, payslips issued, filings made to the IRS and state agencies. You direct the work; the compliance just runs.

What EOR in the USA costs

Two parts: the statutory cost of employing someone, and the EOR partner fee. In the US both vary by state, which is exactly where the right partner saves you money. We make both transparent before you commit.

Employer social security

Employer FICA is 7.65% of wages (6.2% Social Security up to the wage base, plus 1.45% Medicare), with federal and state unemployment and state-mandated workers’ compensation on top.

Minimum wage (2026)

Federal floor is $7.25/hour, but many states set far higher (California $16.90, Washington $17.13). You pay the highest applicable federal, state, or local rate.

Income tax (employee)

Federal 10% to 37% across brackets, plus state income tax in 41 states (0% to 13.3%). Withheld from the employee, not added to your cost.

EOR partner fee

A transparent per-employee monthly fee. We benchmark across our vetted network, typically 15 to 25% below going direct, and renegotiate for you at renewal.

Why run it through Bradford Jacobs

We know which EOR partners are genuinely strong across the US, by state, sector and complexity. We place you with the right one, at pricing you will not get going direct, and stay on your side for the life of the relationship.

Independent, not a single provider

We are independent: we assess what you actually need, place you with the right vetted partner, secure pricing you will not get going direct, and stay on your side to escalate or renegotiate. You get advice, not a product pitch.

  • Independent advice
  • Vetted partners only
  • On your side at renewal

Pricing you can’t get direct

US employer costs split into a fixed piece and a variable one: FICA is set by federal law and the same everywhere, while state unemployment insurance rates depend on the state and the employer’s own claims history. Neither is something a provider can negotiate down. What we do benchmark is the partner’s own fee, across our vetted network, typically 15 to 25% below going direct, and renegotiate it for you at renewal.

  • 15-25% below direct
  • Network benchmarking
  • Renegotiated for you

Straight to the top when it matters

When something needs resolving, and in global employment it sometimes does, you come to us. We escalate directly, past the helpdesk, to people who can actually move it.

  • Direct escalation
  • No support queues
  • Named account contact

Two decades of US compliance

Two decades placing and managing EOR arrangements internationally, with the knowledge of US federal and state employment law, FICA, and multi-state compliance that keeps you covered.

  • EOR specialists
  • Federal & state law
  • Risk removed

Built for conversion to your own entity

Most companies use EOR for 12 to 24 months, then move to their own US entity. We plan that crossover and manage the transition when the economics justify it.

  • EOR to entity path
  • Transition managed
  • Crossover planning

Why the US rewards getting the structure right

Two things define hiring in the US: the speed an EOR gives you, and the fifty-state patchwork that makes the right partner matter. The EOR gives you the first; we handle the second.

Working time, leave & contracts

The US is a fifty-state patchwork. Employment is at-will in 49 states, there is no federal entitlement to paid vacation or sick leave, state minimum wages sit above the federal floor, and taxes stack at federal, state and sometimes local level. The variables shift with every state you hire in, which is why the right EOR partner, and our help choosing it, matters more here than in a single-jurisdiction market.

Operational in days, not weeks

Setting up your own US entity takes time, and you cannot employ anyone until it completes and you have registered for payroll tax in each state. An EOR removes that wait entirely: a compliant contract is issued and your hire starts in days. You prove the market first, then form an entity later only if the headcount justifies it. This is the real value of EOR in the US: speed into a complex market, with the compliance carried by an expert.

What the US EOR covers, end to end

One transparent monthly fee per employee covers all of this. No hidden extras.

Compliant US contract

A compliant US employment contract under the relevant federal and state law, issued and maintained for you.

Payroll & withholding

Monthly payroll run, with federal income tax and FICA calculated, withheld, and filed correctly each month.

Statutory benefits

All statutory obligations administered: FICA, federal and state unemployment, workers’ compensation, FMLA leave where eligible, and lawful exits.

Compliance & support

Ongoing HR compliance and a single point of contact, for the life of the engagement.

Your questions answered

Straight answers on how Employer of Record works in the US.

Is my hire employed by Bradford Jacobs or by me?

Legally, your hire is employed by the US EOR partner we place you with, which is what keeps you compliant without an entity. Day to day they work for you: you set the work, the goals, the relationship. You get the team; the partner carries the legal employer obligations.

Usually within days once the role and salary are agreed, with a compliant contract from day one. Compare that to the time setting up your own US entity and state payroll registrations takes, during which you cannot legally employ anyone.

It depends on the state. Employer FICA is 7.65% of wages, plus federal and state unemployment and state-mandated workers’ compensation; the same 7.65% (6.2% Social Security plus 1.45% Medicare) is also withheld from the employee’s own pay, plus an extra 0.9% Medicare tax on their wages above $200,000. Add the transparent EOR partner fee and you have your all-in cost, which we confirm before you commit.

Yes, when done properly. The EOR is a real US legal employer meeting all federal, state and local payroll, tax and labor obligations. The risk is using an under-resourced partner, which is exactly why we place you with vetted partners and stay on your side.

The compliant contract, monthly payroll (federal and state withholding and FICA), employer contributions, statutory benefits and leave administration, and ongoing HR compliance. We give you one all-in monthly figure up front, with no hidden extras.

Yes, and most companies do once the headcount and permanence justify it. We manage the transition from EOR to your own US entity, and can support the entity formation itself. Most use EOR for 12 to 24 months first.

Ready to hire in the USA?

Tell us the role and we will come back with a compliant, all-in monthly cost and the right partner, usually within a day. No entity, no lock-in, no pitch, just the fastest compliant way to get your person working in the US.

Tax and labor data verified June 2026 (IRS, DOL, OECD). Figures change; we confirm the current position when we scope your hire.